Walmart Announces Creation of New Fintech Startup

  • Walmart Announces Creation of New Fintech Startup

Walmart Announces Creation of New Fintech Startup

As it continues to enhance operations that allow the company to offer customers ways to manage money, Walmart has announced the creation of a new fintech startup enterprise created to develop and offer modern, innovative and affordable financial solutions.

Walmart has struck up a partnership with Ribbit Capital - the venture capital firm behind fintech all-stars Robinhood, Affirm, and Credit Karma - to roll out some new, as-yet-unspecified fintech products. Walmart will be the company's majority owner. The venture will combine Walmart's retail knowledge and scale with Ribbit's fintech expertise to deliver technology-driven financial experiences.

The board includes Furner, Walmart CFO Brett Biggs, and Ribbit Capital's founder and managing partner Meyer Malka. The startup, which has yet to be named, will add more board members, and hire a management team. It anticipates that growth may come through partnerships and acquisitions with leading fintech companies.

"For years, millions of customers have put their trust in Walmart to not only save them money when they shop with us, but help them manage their financial needs", Walmart U.S. president and CEO John Furner said in a statement.

Scott Benedict, director of retail studies at Texas A&M University, said the partnership is a smart move by Walmart.

While the exact type of Fintech that Walmart will now pursue is not clear many Fintechs have partnered with chartered banks to offer bank services thus leveraging regulatory arbitrage to engage with customers in a relationship that truly makes sense. During the past 52 weeks, Walmart shares have traded between $102 and $153.66. Each week, over 265 million customers and members visit approximately 11,400 stores under 55 banners in 26 countries and eCommerce websites.

The startup will provide financial services, but the Bentonville-based group (Arkansas, South America) did not provide further details and did not release the name or date of the launch.